Many pickup truck operators lower their tailgates to a horizontal position and utilize those tailgates as a shelf or workbench for working on various projects. Often those projects have relatively small ferromagnetic parts such as nuts, bolts, screws and washers. This document relates to a new and improved magnetic parts holder and tailgate assembly incorporating a magnetic parts holder for positively holding those parts on the tailgate at a convenient and accessible location as required to complete the project at hand.